Housing Price Variability: National and Local Impacts

Posted: 22 Oct 2014

See all articles by Ting Zhang

Ting Zhang

University of Baltimore

Daniel A. Gerlowski

University of Baltimore

Deborah Ford

University of Baltimore - Division of Economics, Finance and Management Science

Date Written: October 20, 2014

Abstract

This article examines the influence of national and local forces on housing prices in 20 local US real estate markets during the recent housing price run-up and decline. We use reduced-form panel data fixed-effects models with robust SEs to determine the impact of national and local effects on housing prices in 20 US cities across time. A national home price index and mortgage rate are used to measure national impacts on the local markets. A mix of socio-economic variables estimates local impacts. We find no results indicating that national trends lack relevance in local markets; however, we find wide support for the additional inclusion of local socio-economic factors in all markets. The findings are consistent with an environment in which national polices and trends influence all markets; however local policymakers and investors can continue to expect geographic differences in market outcomes.

Suggested Citation

Zhang, Ting and Gerlowski, Daniel A. and Ford, Deborah, Housing Price Variability: National and Local Impacts (October 20, 2014). Applied Economics, Vol. 46, No. 28, 2014, Available at SSRN: https://ssrn.com/abstract=2512599

Ting Zhang (Contact Author)

University of Baltimore ( email )

1420 N. Charles St.
Baltimore, MD 21201-5779
United States

HOME PAGE: http://https://sites.google.com/site/tzhangphd/,

Daniel A. Gerlowski

University of Baltimore ( email )

1420 N. Charles Street
Baltimore, MD 21201
United States

Deborah Ford

University of Baltimore - Division of Economics, Finance and Management Science ( email )

1420 N. Charles Street
Baltimore, MD 21201
United States
410-837-4997 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
692
PlumX Metrics